Filipino trade delegation seeks to bolster relations

MANAMA: A delegation of Filipino business leaders arrived in Bahrain last night to discuss with their Bahraini counterparts the growing trade relations between their countries.

The nine-member delegation also hopes to explore business potentials in the kingdom, said Philippines Embassy consul general Jose de la Rosa Burgos.

"Bahrain is the temporary home of more than 30,000 Filipinos and it is a considerable market for Philippine-made food products," he said.

The Bahrain-Philippines Business Council, in co-operation with the embassy, is organising the businessmen and women's visit to the country.

Filipino Ambassador Eduardo Maglaya will meet with the group at 9am today, followed by a meeting at the Bahrain Chamber of Commerce and Industry, Manama, at 10am.

"Filipino and Bahraini businessmen and women are to meet in the afternoon," said Mr Burgos.
The delegation is to attend a meeting at the Health Ministry tomorrow.

Prior to arriving in Bahrain, the business leaders held similar meetings in Dubai, Qatar and Kuwait. Last year, total trade between the Philippines and Bahrain stood at $9.33 million (BD3.53m). Philippines food exports to Bahrain totalled to $2.13m.

Philippine imports from Bahrain were resource-based products, mineral products, industrial materials, machineries, apparatus and parts, chemicals and metal.

The GCC imported $47.4m worth of Philippines food products last year.

Source:
TradeArabia.com
28 November 2006

Local firms eye strategic partners in Asean

The rising demand for wireless communications devices, notebook computers, and a variety of products that enable Internet connectivity will most likely drive the growth of the electronics industry in the Philippines, according to Arthur Tan, president of the Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI).

"This trend favors Philippine-based semiconductor companies producing digital signal processors or DSPs and analog integrated circuits (IC), storage device and mobile handset, original equipment manufacturers (OEMs), and electronics manufacturing service (EMS) providers catering to these segments," explained Tan.

Global sales of DSPs, added Tan, are projected to grow at a compounded annual growth rate of over 16 percent until 2009 due to the continued increase in demand for mobile phones. "For Philippine-based companies, there are plenty of outsourcing opportunities from OEMs in the automotive, medical, and industrial electronics segments."

Electronics make up the major bulk of Philippine exports. In 2005, Philippine electronics exports reached US billion. The Philippine produces 100 percent of Nokia's DSPs and 80% of Siemen's and Ericsson's under Texas Instruments that is based in the Philippines for three decades.

Likewise, the Philippines supplies 50 percent of the world's requirements for hard disk drives from top 3 global suppliers: Fujitsu, Toshiba, and Hitachi.

In the forthcoming ASEAN Electronics Business Opportunities Exhibition and Conference (AE-BOEC) and reverse trade fair (7 December, Makati Shangri-La), Philippine-based companies look forward to partnering with other companies in the Asean, as well as attract potential investors.

Other exhibitors in AE-BOEC are companies from Thailand, Indonesia, Singapore, Malaysia, and Cambodia. Expected delegations to the exhibit are members of the British Trade and Investment Center and Korea Trade Investment Promotion Agency.

Reports said that most electronics buyers are adopting a 'China plus' strategy instead of relying heavily on China for its electronics requirements. As such, countries like the Philippines stand to benefit from the strategy.

The Philippines has established a solid reputation in electronics manufacturing. Large multinational and semiconductor companies and homegrown EMS providers have served global demand for many years. Every year, the country produces 72 million magnetic heads, 36 million DSPs, 30 million hard disk drives or HDDS, 11 million liquid crystal display units (LCDs), and 8 million optical disk drives (ODDs).

Some of the global electronics companies in the Philippines are Intel, Texas Instruments, and Philips. Three of the largest HDD producers in the Philippines are Hitachi, Fujitsu, and Toshiba.

"Developing our competency is the top priority of the industry. We aim to upgrade the skills of Filipino engineers to meet the industry's requirements, and elevate the industry to higher value activities to retain and attract investments," said Tan.

Together with the government and the academe, SEIPI established the Advanced Research and Competency Development Institute to provide training and competency development support for the industry.

SEIPI has identified seven key program for the country's electronics and semiconductors industry for 2006-2007: competency development, allied and support industry development, retention of existing companies and attraction of new companies, values formation and cultural transformation, government advocacy, organizational improvement, and focused marketing of the country industry in the US, Europe, Japan, and Asia.

Source:

BUSINESS.BALITA.PH
Nov, 27, 2006 (Monday)

Eleven large ASEAN electronic companies to gather in Manila

Eleven ASEAN multinational and homegrown electronic companies will gather in the ASEAN Electronics Business Opportunities Exhibition and Conference (AE-BOEC) on 07 December at the Makati Shangri-La.

P.T. Toshiba Consumer Products (Indonesia), LKT Industrial Berhad (Malaysia), Venture Corporation, Ltd. (Singapore), Hitachi Global Storage Technologies (Thailand), Vietnam Electronics Industry Association (VEIA), Texas Instruments Philippines, Inc., Sharp Philippines, and Panasonic (ASEAN) will present their procurement programs at the ASEAN-Business Opportunities Conference, as well as showcase their products, parts, and supplies they intend to procure from the ASEAN region in the ASEAN Reverse Trade Fair (AE-RTF).

Also joining the AE-RTF are PSI Technologies, Inc., Amkor Technology Philippines, Inc., and ON Semiconductor Philippines, Inc.

“In the ASEAN Reverse Trade Fair, suppliers can walk through a host of multinational electronic companies in the ASEAN,” said Assistant Trade Secretary and CITEM Executive Director Fe Agoncillo-Reyes. “This unique scenario is expected to facilitate tie-ups, business ventures, and joint undertakings during the one-on-one business meetings arranged during the fair,” added Agoncillo- Reyes.

Countries like Cambodia, Indonesia, Malaysia, Philippines, Singapore, and Thailand will feature their investment scenario to encourage investors to do business ventures or establish joint undertakings within the ASEAN region.

The event is expected to bring in delegates from the British Trade and Investment Center, Korea Trade Investment Promotion Agency, Association of Electronics Industries in Singapore, and Malaysia External Trade Development Corporation.

“AE-BOEC is the ASEAN’s first initiative to fast track the integration of the region’s electronics sectors by facilitating and promoting intra-ASEAN investments, improving the condition and retaining manufacturing and other economic activities in the region,” said Agoncillo-Reyes. The event is foreseen to promote intra-ASEAN trade and increase outsourcing through a single production and supply base for all electronic products.

The AE-BOEC is organized by the Center for International Trade Expositions and Missions (CITEM), the trade promotion arm of the Department of Trade and Industry, and in cooperation with the Board of Investments (BOI) Business Development Team for Electronics, the ASEAN Electronics Forum, and Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI).

According to the ASEAN Secretariat Report, intra-ASEAN total trade in 2005 reached US$163.7 billion from US$141.3 billion in 2004.

In the field of electronics, Malaysian electronics industry accounts for around 60% of the country's manufacturing exports and is the leading industrial sector in terms of investment, industrial output and employment. Indonesia represents under 1% of global electronics output and a similar share of the market. Components represent the largest share of output, followed by consumer electronics computing. On the other hand, the electronics industry in the Philippines is dominated by components and computing, the two segments accounting for 87% of the country's electronics output, and is dominated by foreign-owned multinationals who accounted for an estimated 80% of electronics exports.

Production of computer equipment accounts for 48% of total electronics output in Singapore and a major factor in the country accounting for 8% of global electronics output. Thailand 's electronics industry, like many Asian countries, is supported by overseas investment. Computing and components are the highest electronics production of the country.

Philippine firms post $1.98M in sales at Tokyo food fair

PHILIPPINE companies made $1.98 million in sales at the ASEAN Food and Beverage fair in Tokyo last month, making up six percent of the $31 million Southeast Asian exhibitors made, the Center for International Trade Expositions and Missions (CITEM) reported.

The sales, up 151 percent from $785,682 chalked up by Philippine exhibitors at last year’s expo, placed the Philippines sixth among the 10 participating members of the Association of Southeast Asian Nations in terms of sales generated, said CITEM, a unit of the Departmentof Trade and Industry.

The expo had 32 T small- and medium-sized enterprises participating. Three were from the Philippines:namely, GEM Foods International, which makes nata decoco and macapuno strings; Toscana Food Industry, producer of “dilis” fish and squid; and J. Emmanuel Pastries, maker of pili nut delicacies.

Trade and Industry Assistant Secretary Felicitas Agoncillo-Reyes, CITEM executive director, said the three companies were at 103 of 700 trade meetings held at the expo, which was organized by the ASEAN Japan Center.

Reyes said that the Philippine participants were compliant with the Hazard Analysis and Critical Control Point(HACCP) standards and well informed about export procedures.

She said Gem Foods closed deals with Singapore’s ASimple Life restaurant group, which includes Fish &Co., on supply of coco cream for a special noodle dish called “laksa.”

Toscano Food caught the attention of Singapore-based Tong Garden, which specializes in nuts and party snacks, and which expressed interest in Philippine goodies in its product line-up, Reyes said.

A Malaysian confectionery company offered to team upwith J. Emmanuel Pastries on the use pili nuts as new ingredient for chocolate products and other sweets.

Citing data showed that Japan imports 60 percentof its food supply worth $44 billion.

Philippine exporters should increase efforts to tap overseas markets and promote uniquely Filipino products.


-Ronnel Domingo INQ7.net
INQ Interactive, Inc.

Chinese schools interested to engage in MOU with RP

Chinese educational institutions expressed their interest to engage in memoranda of agreement (MOU) with the Philippines to facilitate the recruitment of Chinese students to the country, the Center for International Trade Expositions and Missions (CITEM) reported following the Philippine participation at the China Education Expo (CEE) recently.

MOU are legal documents describing the bilateral agreement between China and Philippines regarding the student-contracting program. Through this mutual recognition, Philippines will partner with local Chinese universities, agents, and overseas advising centers to recruit legitimate students who wish to study in the country.

According to Dean Enrico Hilario of the Technological University of the Philippines (TUP), their participation in CEE was a big success since their school was able to create MOU with several institutions like Yantai Vocational College and China Cultural Affairs. The former agreed to send around 20 Chinese nationals to the state university to study bachelor degree courses like information technology and mechanical engineering, while the latter signed a memorandum stating that they will send an instructor to teach Chinese language to the TUP faculty for free.

Other participants that joined the Philippine delegation in CEE were Enderun Colleges Inc., New England College, and the Royal Institute of Higher Education Inc. (RIHED).

“Although much work is still required for MOUs to generate business for the Philippine schools, the results could increase the market profile of our country and thus, bring long-term existence in the vast China market,” said Trade Assistant Secretary Fe Agoncillo-Reyes, executive director of CITEM.

The huge education market in China, which is approximately US$72 billion (or RMB580 billion), is the result of several factors such as its favorable demographic trends, rapid economic growth, and the increasing importance of higher education and English proficiency for career development and advancement.

The growing trend toward urbanization is expected to make Chinese citizens recognize that higher education leads to greater rewards in terms of income and job opportunities. As stated in China Demographics Yearbook, China has eight cities each with a population of four million, 50 cities each with over one million inhabitants, and 131 cities with more than 500, 000 people.

Furthermore, as the US$ 2.2 trillion China economy continues to follow the globalization trend, Chinese education authorities place greater emphasis on international education exchanges, including permitting large numbers of young Chinese to study abroad at their own expense or thru the government.

“There is a substantial demand for overseas education in China,” Agoncillo-Reyes added. “Other countries have increasingly recognized the opportunities in the market, even non-English speaking nations are actively promoting in China, so the Philippines with its acknowledged edge in English should not be left behind.”

CEE, the largest and most prestigious education fair in China, is officially sponsored by China’s Ministry of Education and is organized by the China Education Association for International Exchange. This year, 450 overseas schools, training centers, professional associations, and other education service providers from 30 nations all over the world participated in the said event.

The Philippine participation in the CEE is organized by CITEM, the export promotions agency of the Department of Trade and Industry.

UK companies to make the Philippines their alternative outsourcing hub

As more European firms open up to outsourcing as a viable business venture, they are now trying to follow what their counterparts in the United States have been doing favorably – send critical business processing work to offshore destinations like the Philippines.

In the recently concluded government-organized e-Services Philippines trade mission to Europe, Philippine IT/BPO companies generated substantial leads and an estimated US$3.15 million sales in business deals, according to the Center for International Trade Expositions and Missions (CITEM), the export promotions arm of the Department of Trade and Industry.

“Nine major companies from Europe are currently in negotiations to do offshore work here. One of these is a giant Dutch company who decided to locate a shared services center in Manila because of our business and cultural affinity with the West and English-proficient workforce,” said Trade Assistant Secretary Fe Agoncillo-Reyes, executive director of CITEM.

Based in a Forrester Research Report, offshore service spending in Western Europe will grow from EUR 1.1 billion in 2004 to EUR 3.6 billion in 2009, with the UK accounting for 76% of that amount. In the Schengen states, the Netherlands is one of the most open economies to outsourcing.

“The Philippines hopes to benefit from the growth of shared services centers (SSC) for multinational companies and niche on more specialized back office functions related to software, F&A as well as HR and supply management,” added Agoncillo-Reyes.

In fact, Philippine companies, according to Agoncillo-Reyes, are well positioned to take advantage of the demand for more sophisticated services, leading to knowledge process outsourcing (KPO) and global solutions delivery as shown in the trade inquiries we received in the mission.

The Philippine participants in the Europe mission were: Alliance Technologies (contact center/BPO technology enabler); BlastAsia (web-based applications, custom/packaged applications); DTSI (contact center/BPO technology enabler), IAMD Software Solutions (website development, animation); Logicall Inc. (contact center); RG Financial Services (financial & accounting services); ADEC Solutions (diversified BPO services); Innove Communications (telecommunications); PLDT (telecommunications); Pointwest Technologies (custom/packaged development); and Vinta Software (custom/packaged development).

Through the mission, the government likewise extended invitations for foreign delegations to
e-Services Philippines (15-16 February 2007), the country’s annual platform for IT and BPO. The delegates also met with EU associations Intellect Group, IAOP London, Rapier Group London, Ministry of Foreign Affairs in The Netherlands, and ICT Office in The Netherlands.

Following the mission, the Philippines was also nominated in the UK’s National Outsourcing Association (NOA) Awards for Best Practices. NOA is an independent body in the United Kingdom that promotes best practices, service, and innovation in outsorucing.

“As the world becomes flatter with the outsourcing trend, the challenge for the Philippines is to continue to move up the value chain and intensify the promotion of the Philippines as a viable location for specific verticals such as F&A, HR, and administration processing,” said Agoncillo-Reyes.

For more information on the Philippine trade and investment mission, please contact CITEM’s IT Services and Electronics Division at (+632) 8325044 and (+632) 8312201 locals 212, 251, and 301, email itservices@citem.com.ph or visit the website www.e-servicesphils.com/europe2006

Animation contest to focus on global Filipino talent

For the past decades, Filipino animators have done extraordinary work for international studios like Pixar, Dreamworks, Warner Brothers, Cartoon Network, Nickelodeon and Disney. In a bid to promote Filipino talent in animation, the Department of Trade and Industry (DTI) through the Center for International Trade Expositions and Missions (CITEM), its export promotion arm and the Animation Council of the Philippines (ACPI) are launching Animazing Shorts 2007: 5th Animation Competition and the Philippine Animation Film Festival (PAFF).

The race is on for the next batch of outstanding Filipino animators who can create visually stunning work and tell a good story with a positive theme.

Animazing Shorts is open to all students of Philippine colleges and universities as well as freelance or employed animators. There is no limit to number of team members for group entries. The animated short could be in any medium – 2D, 3D or mixed. The contest is open to amateur animators (whether group or individual) from any college or university, and freelanced or employed animators.

ACPI and CITEM are now accepting entries for Animazing Shorts. The contest schedule includes the following: November 17 (Submission of Storyboards); November 20 (Initial Screening of Entries); November 21 (Announcement of Finalists); February 9 (Submission of Final Material); and February 10 (Final Screening).

Animazing Shorts entries also qualify for the First Philippine Animation Film Festival.

“The film festival is an opportunity to show the world Filipino ingenuity and creativity in the field of animation and help broaden awareness and appreciation of Filipino talent,” said Marie Grace Dimaranan, president of ACPI.

The film festival is also a homecoming event for Filipino animators working in international foreign studios all over the world so “they can showcase their works and how successful they are in animation.”

“In addition, the film festival is meant to encourage our young talents to look into animation as a career and also to encourage local content production,” added Dimaranan. “Hopefully, this event will encourage local producers to invest in animation projects and television networks to support locally produced content and grow the local animation market.”

As a new twist to Animazing Shorts, the government’s annual contest for animation, winning entries will be judged according to ballots and online polls accessible at the ACPI website
www.animationcouncil.org and e-Services Philippines website or www.e-servicesphils.com.

This year, one of Animazing Shorts winning films “Doodle of Doom” by College of St Benilde’s students Nelson Caliguia Jr and Jason Confesor had been qualified as among the finalists in the Nickelodeon’s Animation Festival, together with animators from France, Canada, Germany, England, and the United States.

For the past years, Filipinos are recognized not only for their creative and artistic skills, which is an important factor in animation, but also for the consistent quality and speed by which they can deliver their output. Filipinos are also proficient in English and have an innate ability to comprehend concepts and storylines better than their other Asian counterparts.

For information on the Animazing Shorts and the Philippine Animation Film Festival, please contact: CITEM’s IT Services and Electronics Division at (+632) 8325044 and (+632) 8312201 locals 212, 251, and 301, or email itservices@citem.com.ph

Small exporters eye Japanese food market

Small Filipino enterprises are eyeing new niches for their food products in Tokyo’s annual ASEAN Food and Beverage Exhibition this month, according to the Center for International Trade Expositions and Missions (CITEM).

Participating in the Tokyo exhibition are GEM Foods International which makes nata de coco and macapuno strings, Toscano Food Industry which makes dilis and pusit, and J. Emmanuel Pastries which makes pili nut delicacies.
The ASEAN Japan Center organized this year’s exhibition whose theme is "The Flavours of ASEAN, the Choice for Shoku Iku of Japan."

"Shoku" means food and diet and "iku" means education. It is a concept which reflects the Japanese government’s drive to promote healthy living.

"This year’s Philippine participation in AFB hopes to assist our SMEs address the strict global safety standards of Japan and help them find a new niche for our local delicacies," said Trade Assistant Secretary and CITEM head Fe Agoncillo-Reyes.

Various one-on-one business meetings are arranged between Japanese buyers and the Filipino participants during their visit from Oct.15 to 21 this year with a projected observation tour of the Ajinomoto factory.

"For our exporters, penetrating Japan’s wholesale and retail food markets is worth pursuing. Currently, we export nata de coco and seafood to Japan and pili nuts are a welcome addition to our exports with huge potential. Promoting them in Japan will not only bring additional export revenues, but will also help the other allied industries in Bicol, the current center of the pili nut industry in the country," Agoncillo-Reyes said.

A study at the University of Hawaii at Manoa (home to macadamia breeders) showed that the Philippine pili nut is equivalent to macadamia. It is not only an extraordinary nut, but is also rich in nutritional value, which according to Agoncillo-Reyes, makes it a potential export in the health-conscious Japanese market.

In 2005, total sales amounted to $785,682 and generated significant inquiries.

Thirty-two exhibitors from 10 ASEAN countries are participating in the event.

The ASEAN-Japan Centre was established in 1981 and has been promoting trade, investment and tourism between ASEAN countries and Japan through various activities.

Source:
ABS-CBN Interactive
http://www.abs-cbnnews.com/storypage.aspx?StoryId=53882

Philippine suppliers eye ASEAN OEMs as partners

Philippine electronics suppliers are eyeing major original electronic manufacturers from the ASEAN in the forthcoming ASEAN Electronics Business Opportunities Exhibition and Conference (AE-BOEC), a whole day conference and reverse trade fair featuring major buyers from the ASEAN as presenters and exhibitors.

“This unique scenario gives our local suppliers for consumer electronics, electronic data processing, electronic manufacturing, and semi-conductor industries a chance to meet the major ASEAN buyers face to face and offer their new products and manufacturing capabilities in one venue,” said Trade Assistant Secretary Fe Agoncillo-Reyes, executive director of the Center for International Trade Expositions and Missions (CITEM).

The event, which coincides with the 12th ASEAN Summit and the ASEAN Electronics Business Leaders Meeting to be held in Cebu City, is also part of the ASEAN efforts to facilitate the integration of its electronics industries, Agoncillo-Reyes also said.

AE-BOEC is slated on 07 December at the Rizal Ballroom of the Makati Shangri-La Hotel.

One of the highlights of AE-BOEC is the ASEAN Electronics Reverse Trade Fair (AE-RTF) where suppliers can walk through a host of large electronic companies from the Philippines, Thailand, Vietnam, Malaysia, Singapore, and Indonesia, and get first hand information on the products, materials, and services, which the ASEAN buyers intend to procure.

AE-RTF also involves promoting the intra-ASEAN trade through a single production and supply base for all electronics products, discovering supply chain benefits, such as competitive pricing and turn-around time, and exploring possible opportunities for ASEAN brands/products to be sold to other regions.

Investors who are planning to expand their businesses within the ASEAN, can take a look of the investment scenario in different countries, and learn about the existing framework for intra-ASEAN trade agreements in said event.

The AE-BOEC is a joint undertaking of the Department of Trade and Industry (DTI) through the Board of Investments (BOI)’s Business Development Team for Electronics and the Center for International Trade Expositions and Missions (CITEM), and the Semiconductor and Electronics Industries of the Philippines, Inc. (SEIPI).

Companies who are interested to get a hold of the priority appointments for one-on-one business meetings must pre-register with the AE-BOEC Secretariat at 8311268, 8312201 locals 257 and 227, or email industrial@citem.com.ph.

Middle East offers huge market for Philippine food

The Philippine food industry stands to benefit from the projected increase in the Arab Peninsula’s food imports by over 50% of its estimated US$9 billion annual food and agricultural products, mainly attributed to the region’s rapid population growth (estimated to be 64 million by 2025), the Center for International Trade Expositions and Missions (CITEM) reported.


“The Middle East is one of the most interesting world markets for food and beverages. This region, including the GCC countries, already amounts to a US$ 12 billion food industry as of 2005,” said Trade Assistant Secretary and CITEM Executive Director Fe Agoncillo-Reyes.

In abid to address the growing Middle East food market, the Department of Trade and Industry through CITEM in cooperation with the Philippine Trade and Investment Center in Dubai and the Philippine embassies in Qatar, Bahrain, and Kuwait, will hold a Roadshow promotion dubbed as ‘IFEX Philippines Goes to the Middle East’ (17-26 November 2006).

The Roadshow primarily aims to capture the nearly food-independent GCC countries, whose economies have relatively high per capita income levels. GCC or the Gulf Cooperation Council member countries include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates, and Yemen.

“Aside from sustaining the image-building efforts of the country as a reliable source of consumer-ready and high value imported food products, we also intend to strengthen our foothold on the million-strong Overseas Filipino Workers (OFWs) based in the Arab world,” added Agoncillo-Reyes.

Agoncillo-Reyes also explained that this trade and business event will focus on the market prospects in the states of Dubai in U.A.E., Qatar in Doha, Manama in Bahrain, and Basra in Kuwait, while taking advantage on the locations’ geographic proximity to Saudi Arabia and other Arab states.

The IFEX Roadshow will include round table discussion with the Dubai Food Authority on the updated market entry requirements for imported food, courtesy calls on Philippine Embassies in areas concerned, pre-arranged business matchings with leading food trade associations and importers, and visits to key food retailers and wholesalers of Philippine food products in identified Arab states.

“We also plan to network with Halal certifying bodies and authorities in the Pan Arab regions. If Philippine-manufactured Halal products become globally compliant, then it will be easy for us to penetrate the Moslem market,” noted Agoncillo-Reyes. Reports say that the global Halal food market is set to reach US$ 500 billion by 2010.

In 2004, the Philippine delegation of the Middle East cum Food Festival clinched US$ 10.7 million in sales while the participants of the Saudi Food held last year generated a total of US$ 5 million sales. Bestsellers in these two fairs were canned tuna and sardines, preserved fruits, powdered coconut, condiments, fruits and vegetables, fruit juices, noodles, ice cream and dairy products, wines, cereals, and desiccated coconut.

To date, the 2005 Philippine exports on food and food preparations reached US$ 1.7 billion, posting a 4.9 per cent increase over 2004 figures. Meanwhile, a total of US$ 47.4 million worth of Philippine food products was imported by the Middle East particularly the U.A.E., Qatar, Bahrain, and Kuwait.

For information on joining the Philippine delegation to the Middle East, please call CITEM, Agri-Marine Division at 831-1282, 831-2201 locals. 204 and 238 or e-mail: agrimarine@citem.com.ph.

Manila FAME International highlights Filipino creativity this October

The world’s trendsetters and style hunters are set to visit the Philippines once more when Manila F.A.M.E. International, the country’s second longest running tradeshow for furnishings, houseware, holiday décor, and fashion accessories take place on 17 to 20 October. And this time, they are bound to discover new design ideas and captivating products from four top Filipino designers Carlo Tanseco, Joel and Olive Enriquez, and Yvonne-Quisumbing Romulo through the Merchandise Development Consultancy Program (MDCP).

When the show was launched in 1983, buyers from all over the world were introduced to a new design philosophy that blended traditional Asian elements with the Filipinos’ own brand of modernism and creativity, resulting in revolutionary products for the global market. Two decades later, the show continues to amaze international buyers with its stylish and sophisticated collection, and the April edition proved just that, which generated a total of U$ 51 Million a positive sign that Philippine manufacturers continue to deliver value and that the country is still among the leading destinations in the region for design-driven products.

Introduced in 1997, the MDCP paved the way for local and foreign designers to work closely with the country’s local small and medium enterprises (SMEs) to develop globally competitive products. Using a wide cross-section of natural indigenous materials endemic to the Philippines, and combining these with modern production techniques and processes, the designer, manufacturer, and the artisans find ingenious ways to interpret their innovative ideas into compelling artistic expressions. The resulting products are displayed to advantage in unique special settings, which are considered among the most anticipated highlights of the Manila F.A.M.E. International.

One of the highlights of the October fair is a half-day forum by the Nelly Rodi™ agency, a Paris-based company with a worldwide network of professionals and represented in more than 17 countries. The forum, which will take place on 16 October, will tackle the latest factors that influence lifestyle, consumer behavior, and consumption patterns, which create an impact on product design and development. CITEM organized the event in time with Manila F.A.M.E. so that exhibitors could maximize their trips by taking advantage of this unique opportunity to learn and interact with leading experts in branding.

The forum will also address the need of the home furnishings industry, and give them access to market intelligence information and developments in international home furnishings markets and how it impacts on Philippine exporters/manufacturers. It also aims to educate Philippine manufacturers and exporters on the concept of integrating product development, marketing and market research and sociological influences and how it can be a basis of improving the long-term competitiveness of Philippine home furnishings industry. All in all, the forum hopes to upgrade the skills and talents of Philippine designers through this method of product design and development, and enhance the image and reputation of the Philippines as a source of design-driven merchandise.

Nelly Rodi™ agency has a wealth of in-house experts: fashion artists, designers, sketchers, scenographers, and model makers. Its clients include Moët Hennessy, Louis Vuitton (LVMH) Group, Givenchy, Agnés B., Benelux Orient, Foire de Paris, Department of Export Promotion (Thailand) and L’Oreal Professional.

Aside from exhibitors, CITEM expects practicing designers, architects, interior designers and other creative professionals, as well as representatives from the government and the academe to participate in this event.

For information, please contact CITEM’s Softgoods and Hardgoods Division at (+632) 833-1258 or (+632) 831-1265 or email softgoods@citem.com.ph or hardgoods@citem.com.ph. You may also visit www.manilafame.com.

Six home building companies to attend Middle East Fair

Exporters eye business contracts in Dubai, Abu Dhabi

Six Filipino exporters in the home building sector hope to clinch business contracts in the Middle East market, specifically Dubai and Abu Dhabi.

Philippine companies Grace Park International, Lightworks Resources Inc., Madeka Stone Development Enterprises, Raphael Legacy, Teresa Marble, and World Chem Enviro Technologies will represent the Philippines in the country’s first foray into Big 5 Dubai (28 October-November1), the Middle East Fair targeting the construction market.

“The Philippine home building sector is ready for independent promotion in Dubai,” according to Trade Assistant Secretary Fe Agoncillo-Reyes, head of the Center for International Trade Expositions and Missions (CITEM), the export promotion arm of the Department of Trade and Industry (DTI).

For the past three years, Philippine home building companies would join firms engaged in furniture and home accents in INDEX, another Middle East show for furniture, interiors, and retail design.

The Philippines first participation in The Big 5 Dubai is expected to establish contracts with the key decision makers in the Gulf region, as well as equip the Philippine construction materials supplies company with knowledge on best industry practices and standards. The Philippine participation is organized by CITEM.

This year, the participation to the Big 5 Dubai is also seen as a venue to secure supplier contracts and bigger sales, according to James Rosca, export manager of Teresa Marble. As majority of construction projects in the Gulf near completion, demand for woodworks and coverings is expected to increase.

Teresa Marble has been operating for more than 25 years supplying marbles to countries like the United States and Asia. It has an annual production capacity of 12,000 cubic meters sourced from Bulacan, Rizal, and Cebu.

Grace Park International makes wooden kitchen systems. It is the country’s only manufacturer of particle boards.

Lightworks Resources, Inc is famous for its earthenware pieces and will introduce its bathroom sink, wall, and floor tiles in the fair.

Madeka Stone Development Enterprises has 15 years of experience in manufacturing and distributing natural stones. It will seek to clinch deals for its slates, wood stones, shell stones, and coco coir.

Raphael Legacy, an awardee of utility patent for its mosaic products will feature its Greek and Roman inspired mosaic tiles, floor tiles, and medallion.

World Chem Enviro Technologies, Inc., provider of waste and wastewater treatment technologies, equipment and related process, on the other hand, will look into UAE’s US$7 billion spending for water resources development for the next 25 years.

The Philippine pavilion will be at BN E445 of Shaikh Maktoum Hall.

Philippine construction materials suppliers are specified for prestigious projects worldwide because of its competitive price and quality, environment-friendly operations, customer orientation, sales and delivery reliability, and excellent post sales service commitments.

The country’s readiness and capacity to supply bulk requirements are credited to its abundant natural resources. Philippine marble known for its color and durability has recorded US$ 9 million of exports in 2005, posting an annual growth rate of 7.7%. The country has 13 exporters with abundant supply from Bulacan, Metro Manila, Romblon, Cebu, Nueva Ecija, and Batangas.

Woodworks is also one of the growth drivers of Philippine construction material industry with an average growth rate of 29%. Last year, woodworks has contributed US$ 107.49 million from the country’s construction material exports.
The sanitary and bathroom fixtures manufacturing industry posted US$27.15 million in 2005, recording an annual growth rate of 36%.

More Brits interested in ethnic food

Filipino food manufacturers urged to tap the UK market

Philippine food manufacturers of fruit juices, biscuits, and other ‘comfort foods’ will have huge potential in the United Kingdom market, according to Nicholas Orledge, a consultant for the UK who worked as a senior buyer for Tesco.

Tesco is a UK-based international supermarket chain and the largest British retailer, both by global sales and by domestic market share.

Orledge said that the UK’s rising population and increasing immigrants have led to a globalized food consumption patterns among Brits and also in the growth of exotic foods.

According to Orledge, Philippine food products will surely gain attention from British consumers by arranging trade fairs in their country, creating promotional materials, and following their food standards. He noted that since Britons are very concerned when it comes to food ethical issues, Filipino manufacturers should comply with the strict UK regulations in order to gain deals.

The British food expert was in Manila as guest speaker for the IFEX Symposium Series: ‘The Global Challenge of Food Safety and Regulatory Compliance in the United Kingdom’ organized by the Center for International Trade Expositions and Missions (CITEM) and the Brand Management Team for food of the Department of Trade and Industry.

During the symposium, he introduced the British Retail Consortium (BRC) Food Technical Standard which is developed to be used as an evaluation of the retailers’ own brand food products. This Standard is regarded as the benchmark for best practice in the food industry. It is now used outside the UK and has evolved into a global standard, not only to assess the retailers’ supplies, but also to serve as a framework where companies can base their supplier assessment programs.

Orledge advised the participants that Philippine food manufacturers who wish to market in UK should pass the BRC’s qualifications such as creating a computer-generated system which manages the traceability, receipts, and process controls of the products, training quality-assurance officers in the factories, and building new factories where foods can be sanitarily processed and packaged. Other food standards that are very important for consumers include the ingredient list, allergens, production methods, origin labeling, information and risk, and nutrition labeling.

The seminar was participated by various food companies such as Branded Food and Ingredients Enterprise, Coffee Blends Export Corp., First Choice Food, Florence Food Corp., Gem Foods Inc., Grand Alphatech, KSK Food Products, Leslie Corp., Liwayway Mktg. Corp, Marketreach Distributors, Marikina Food Corp., Mega Fishing Corp., Monde Nissin Corp., Nutrilicious Food Corp., Oriental Synergies, Primex Coco Food, Rebisco Food of Group Companies, Profood International, RFM Foods, and Universal Robina Corporation.

Philippines pushes for aggressive marketing promotions of ICT and BPO in the US

Philippine business processing companies’ foray into the global market will be given a boost through a trade and investment mission organized by the Department of Trade and Industry through the Center for International Trade Expositions and Missions (CITEM) and the Board of Investments (BOI).

“The mission aims to sustain the government’s aggressive marketing promotions of the Philippine IT and BPO capability on customer relations management, procurement, financial, H&R, data transcription, design and engineering, as well as animation in the United States,” explained Trade Assistant Secretary Fe Agoncillo-Reyes, executive director of CITEM.

The US mission (25 September-4 October) is also in coordination with the Philippine Trade and Investment Center and will focus on Chicago, New York, Miami, and Denver as primary target markets for the Philippines. The Philippine delegation will consist 10 companies providing BPO and IT sourcing services.

Activities during the mission include a business forum on the Philippine IT advantage, pre-arranged business meetings, and a high-level networking reception.

The United States remains the Philippines’ primary source market for outsourced business processes and contact center services. Driven significantly by the prosperity to send business processing work oversease, cut costs, and focus on core competencies to remain globally competitive, the US accounts for about 60 percent of the total BPO spending in the global market.

According to statistics, the global BPO market is projected to reach 173 billion dollars by 2007. In 2004, global BPO market reached 131 billion dollars. Presently, North America remains the dominant market for ITES-BPO services, accounting for nearly 60 percent of the total market.

“The United States presents new commercial opportunities to our BPO firms,” said Agoncillo-Reyes. “Its total core insurance BPO is projected to grow to 3 billion dollars in 2006. Also, US will remain, by far, the largest finance and accounting BPO market, with transaction management functions driving its growth.”

Meanwhile, the United States’ human resources work (e.g. HR consulting services, HR volume processing services) accounted for 24 billion dollars in 2004 and is seen to rise to 42 billion dollars by 2008.

“We would like to help our small enterprises in the BPO space who want to collaborate with international partners through this trade and investment mission. These local enterprises are going to be crucial players in the knowledge-based economy and the US mission can become a strong bridge for partnerships and investments,” added Agoncillo-Reyes. “Also, we hope to invite delegations from the United States to attend e-Services Philippines, the government’s flagship show for our players in the IT and ITES industries.”

BPO in the Philippines is one of its fastest growing industries. The BPO boom was led by the demand for offshore call centers. In fact, there were about 112, 000 workers employed in call centers in 2005, and the industry generated about 1.12 billion revenues during the same period.

In addition, the BPO industry in the Philippines has the largest number of accredited accountants in Asia. Filipino accountants are known for their flexibility in working with multiple standards in accounting.

According to neoIT’s Annual Mapping Offshore Markets Update in 2005, the Philippines is ranked 3rd in the world’s top BPO destinations. It is considered the most serious rival to India when it comes to BPO.

As more US firms focus on core competencies, Agoncillo-Reyes said, opportunities abound for niche back office services. For the Philippines, its cultural and geographic lead is already a key advantage. It is only a matter of developing scalable skills and resources required by target niches through domain expertise and continuous training.

“If we are to leverage on our unique attachment to the US model, there are vast opportunities present for customer contact center, business back office, human resources work, content management and development, arts and engineering, procurement, software and medical transcription,” said Agoncillo-Reyes. “The challenge is to position the Philippines as a preferred sourcing destination of choice for US companies”

Also, it is projected that the US labor shortage will reach its peak in 2010 to 2015, when the retirement of baby boomers will result in as many as 15 million jobs unfilled. In a fight to remain competitive, companies are looking beyond traditional labor markets. Thus, the need to hire a third-party provider like the Philippines to manage their non-core processes remain evident.

For information on joining the Philippine delegation to the United States, please contact CITEM, IT Services and Electronics Division at (02) 8325044 and 8312201 locals 212, 251, and 278, or email itservices@citem.com.ph.

Philippine MT companies explore US market for transcription deals

The Philippine medical transcription industry expects to secure bigger business deals from healthcare institutions in the United States through its participation to the 78th AHIMA Convention and Exhibition (7-12 October) in the United States, the Center for International Trade Expositions and Missions (CITEM) reported.

The United States’ medical transcription industry is worth 25 billion dollars and is expected to grow by 20 percent annually, industry reports said. This is due to the increasing documentation demand to support reimbursement, risk management, and the need for more data.

Despite being the largest market in MT services, the United States is experiencing a shortage in medical transcriptionists, as its younger population were no longer interested in entering the MT profession leaving the industry with aging transcriptionists between 47-51.

“This growing shortage of medical transcription personnel in the US because of retirement and inadequate new recruits joining the profession opens up opportunities for Philippine MT companies,” noted Trade Assistant Secretary Fe Agoncillo-Reyes, head of the Center for International Trade Expositions and Missions (CITEM). “Our cultural closeness to the United States, American educational system, including American diction and pronunciation give our local MT an advantage in dealing with American clients.”

The Medical Transciption Industry Association of the Philippines (MTIAPI) and CITEM organized this year’s Philippine participation to AHIMA.

AHIMA stands for American Health Information Management Association and represents more than 50, 000 educated health information management professionals. As a professional organization, they make and influence buying decisions.

To date, the Philippines accounts for 10 percent of the total MT work that the US outsources to Asia. Filipino transcriptionists can transcribe up to 1,000 lines per day, at a 98% accuracy rate. In 2003, the Philippines was awarded the largest medical transcription contract in the world (
23, 000 lines per day), according to the Philippine IT Pffshore Network.

“We see further growth in the demand for medical transcription as US industry reports say that there are approximately 6, 700 hospitals in the US have yet to convert medical notes to electronic files,” said Agoncillo-Reyes.

The Philippine medical transcription industry is an emerging industry with its rich pool of low-cost yet English-proficient and IT-skilled workers with medical backgrounds, familarity with US medical standards and practices, and advanced and cost-competitive telecom infrastructure, as well as the speed it can deliver output to the United States due to the 12-hour difference between two countries.

In 2005, the Philippines ranked third in the world for top BPO destinations based on neoIT’s Mapping Offshore Update. The Philippine MT industry employs about 5, 000 professionals and offer transcription services for mergency reports, consultation reports, clinicial notes, psychiatric evaluation, laboratory x-ray reports and therapy and rehabilitation notes using highly advanced software and equipment from the United States.

For the past years, the DTI through CITEM, the Board of Investments and its Foreign Trade Service Corps together with MTIAPI and Pearl2 projects have been promoting the Philippine capability in transcription in the US. Other than the participation to AHIMA, their other efforts include international trade and investment mission, business matching activities, and seminars.

For information about the Philippine participation to AHIMA, please contact CITEM’s IT Services and Electronics Division at (+632) 8325044 and (+632) 8312201 locals 212, 251, and 301, or email itservices@citem.com.ph

Philippines targets Western Europe ITO/BPO markets

Philippine IT and business processing firms are eyeing Europe’s ITO/BPO market, according to the Center for International Trade Expositions and Missions (CITEM).

“The Philippines will adopt a country-by-country strategy that would fit the service requirements of each region,” said Trade Assistant Secretary and CITEM Executive Director Fe Agoncillo-Reyes. Activities will include business forum on the Philippine ICT advantage, pre-arranged business meetings, and high-level networking reception.

The global outsourcing market is projected to reach US$310 billion in 2008, 22% of which will come from Europe, according to PriceWaterhouseCoopers, one of the largest international professional services firms. The United Kingdom still stands out as Europe’s dominant market, but outsourcing has gained ground in Germany, the Netherlands, Spain, and France.

“The continuing pressure on time to market and cost bases are driving European companies to look at offshore outsourcing as a strategic alternative,” Agoncillo-Reyes said. The financial services sector is the largest consumer of BPO-ITES services in Europe, followed by utilities and telecommunications. Human resources, finance and accounting are also showing notable growth.

Western Europe’s spending on core BPO services will grow from US$20.9 billion from 2005 to US$39.8 billion on 2010, based on a research conducted by research group IDC. The largest was customer care (US$8 billion) and industry-specific BPO (US$7.6 billion). Procurement BPO is seen to be the fastest growing segment, from US$245 million in 2005 to US$716 million by 2010.

Another independent technology and market research company, Forrester Research, estimates that the UK will account for three-quarters of all European offshore outsourcing in five years’ time, with software development as the main service provided.

It was also predicted that large Dutch companies would outsource more projects, while SMEs would follow-suit.

According to Bernd Taselaar of Dutch brand organization ICT-office, on a macro-level, global outsourcing may indeed even improve their market position and give new economic impulses to the ICT sector. “In the Netherlands, we must focus especially on innovative applications and effective use of innovative opportunities,” Tasellar added.

“The EU trade mission is part of our ongoing promotion of the Philippine ICT capabilities to European IT/BPO market,” added Agoncillo-Reyes. The EU trade mission will be held on 13-24 September 2006.

In 2005, the DTI-organized trade mission yielded business leads with Logica CMG, a leading wireless telecom leader with headquarters in the UK that decided to set up an offshore development center and in-house call center in the country; Express Gifts for outsourced call center activities; KLM Royal Dutch Airlines for a shared-facility and contact center operations; Emirates Airlines for BPO and software development services; and HSBC with a prospect to continue its expansion for Philippine-based shared services, among others.

The business mission also aims to strengthen ties with the Philippines’ counterpart organizations such as the London Chamber of Commerce, National Outsourcing Association (NOA), International Association of Outsourcing Professionals (IAOP) in the UK; FENIT, The Agency for International Business and Cooperation (EVD), and CBI in Netherlands.

The Philippines consistently ranks among the top attractive offshore location by various research firms, such as the A.T. Kearney, Gartner, and META.

Philippines is now the outsourcing location of some Dutch companies like Getronics, ING Group, KLM Royal Dutch Airlines, and ABN-AMRO.

British companies like Standard Chartered Bank, Sykes, and Ambergis Solutions have established outsourcing operations in the Philippines.

For information on the Philippine trade mission to Europe, please contact CITEM, IT Services and Electronics Division at (02) 8325044 and 8312201 locals 212, 251, and 278, or email itservices@citem.com.ph.

IFEX Philippines 2006 generates 79.9 million sales

IFEX Philippines, now on its third year in standing as the most significant country-sponsored event that showcases the best offerings of the local food industry, has achieved USD 79.9 million in export earnings, with a 316 per cent increase from last year’s sale of USD 31.8 million.

The country’s 283 food exporters, manufacturers, and consolidators hit the mark in accompanying 1,332 buyers—1,118 of which are from various local regions, while 214 are from different countries. These key foreign buyers came from Australia, Canada, China, Europe, Japan, Korea, Malaysia, Singapore, Thailand, Taiwan, and USA.

Some of these leading foreign buyers/companies include Hirasho Shoten, Health Co. Ltd., Heuschen Schrouff, Manning Impex, Five Rings, and Wilby Commercial. They were also part of the IFEX Very Important Buyers

“We are very pleased to say that the significant growth in the number of visiting buyers and of course, in the earnings of IFEX proved that our country remains a reliable source and hub for Asian ethnic foods, Filipino cuisine, and fresh and processed products,” said Trade Assistant Secretary Fe-Agoncillo-Reyes, also head of the Center for International Trade Expositions and Missions (CITEM), the export promotions agency of the Department of Trade and Industry.

IFEX 2006’ best selling products were fresh and frozen fish; sardines; frozen fruits and vegetables like saluyot, ampalaya, and banana; octopus; meat preparations like ham and sausage; processed fruits like banana chips and dried fruit cocktail; fruit and vegetable juice; coffee and cocoa; cookies and crackers; and cereal preparations such as cake and polvoron.

This year’s Partner Region Program (PRP) featured the fiery dishes and flavorful packaged delicacies of the Bicol Peninsula. Twenty-six companies from the said region specifically highlighted their well-known pili, laing, pinangat, and crab meat products. Technical seminars regarding the ISO 22000 Food Safety Management Program, Supplier’s Requirements, and Business Opportunities for OFWs were also offered to the participants to help them update with the latest trends and developments on food quality systems, empowering them to be more competitive in the business arena.

“The seminars were very encouraging,” an SME Marketing Manager said. “We now learned additional modern strategies in enhancing our manufacturing skills, kaya I’m sure na we will attract more buyers on next year’s IFEX.”

Exhibitors were also given 30 minutes to conduct product/cooking demos in the Retailers Zone Special Events area. Organized with COOK Magazine, the cooking exhibitions did not only set the place for sharing the latest product innovations, but also for product sampling and cooking contests.

Competitions like Best Booth and Trendy Packaging were also held to motivate food manufacturers to further improve their standards of presentation as well as to give credit to those who have invested their time, efforts, and resource in developing a product for the export market.

KSK Boy Bawang triumphed over the 200 candidates for the Best Booth category. Meanwhile, five out of 21 nominees were declared as the Trendy Award winners: Antonio Pueo Incorporada, FD Gonzales Food Product, Gem Food International Inc., Nutri-Prime Products Inc., and Sorsogon Food Enterprises.

“So far, all of the objectives of IFEX including the upgrading of the Philippines’ image as a destination for modern food ideas in Asia and the global promotion of SME products were sufficiently accomplished. We hope that this victory continues on the succeeding years of IFEX,” added Agoncillo-Reyes. The annual food fair was held on May 12-14 at the World Trade Center Manila and was organized by CITEM.

Staying ahead in software outsourcing

Philippine software industry eyes new targets in global outsourcing

Dubbed as the best kept secret of global brands in software outsourcing, the Philippines eyes new targets to further fuel the growth of the country’s exports of software products and services.

“The industry is projecting an increase in software exports of 33% or 272 million dollars for 2006,” said Mon Villar, executive director of the Philippine Software Industry Association (PSIA). “Aside from growing the domestic market, we hope to increase our collaboration with foreign companies, either through cross-selling, resource pooling or sub-contracting.” Industry reports said that software exports rose by 20% from 2004 to 2005, equivalent to 204 million dollars.

Still, with competition from neighboring countries, Villar said that the industry plans to grow the domestic market, increase software exports, and focus on quality and domain expertise.

To date, PSIA members generate over a billion pesos in sales from the local market. There are about 17 software companies in the countries that are certified or about to be certified in CMM or CMMI. Likewise, 41 companies have been ISO 9000 and ISO 17799 certified already.

“In today’s global market,” Villar added, “there is a premium on business process knowledge as very few providers have it. This leads to our sustainable advantage over competitor countries like China and Vietnam. We want to focus on our process and technical expertise in finance, HR, gaming, and manufacturing.”

This June 28-30, the Philippines will be bringing several of its leading software development outsourcing players in the 15th Software Development Expo and Conference in Tokyo, Japan. These companies are ADTX Systems, Alliance Software, Astra Philippines Inc., Berthaphil Business Park, N Pax Cebu Corporation, Pointwest Technologies, and Tsukiden Software Philippines Inc. The Philippine participation to Sodec is organized by the Center for International Trade Expositions and Missions (CITEM), the export promotion arm of the Department of Trade and Industry.

“SODEC is an opportunity to highlight our capabilities beyond software development. We hope to strengthen the Philippine position as a destination of choice not just for software outsourcing but also for business processes and other value-added services like online ticketing, medical imaging and mobile applications,” said Trade Assistant Secretary Fe Agoncillo-Reyes, also head of CITEM.

A software powerhouse, the Philippines is home to multinational brands and players in the global software industry, Accenture, Hewlett Packard, IBM Solutions, Sun Microsystems, Headstrong, RCG-IT, and Software Ventures International. Some of the leading Japanese companies who are in the Philippines are Canon, Fujitsu, and WeServ to name a few. In a survey of overseas transactions in July 2004, the Philippines was one of the top ten offshore destinations preferred by Japanese software companies.

The Fly High Program

The software industry is a vital part of the Philippine economy. To further boost the growth of this sector, the PSIA together with the Commission on Information and Communications Technology (CICT) have mapped out a five-year plan for the sector known as, FLY HIGH: Philippine Software 2010.

To date, there are over 28, 000 software developers in the Philippines. “The software industry has exported a total 156 million dollars (8.1 billion pesos) in professional software services to the foreign market in 2005,” said Villar.

Of this figure, 23 million dollars is attributed to the local market. The industry, added Villar, had an estimated 50% growth rate in terms of manpower from 2004 to 2005. PSIA projects this figure to grow by 33% in 2006, with support from the government. Under President Arroyo’s “Training for Work Coupon” program, the software industry hopes to augment its current workforce through training of near-hires through accredited centers using PSIA-approved curriculum. “We are keen on recruiting talent and boost more opportunities for our creative software personnel.”

Prospects

Japan represents a large potential market for software outsourcing. Japan’s information services industry sales in 2003 amounted to 129 billion dollars, based on statistics obtained from the Japan Information Service Industry Association (JISA).

Statistics also showed that outsourced software development work in Japan rose to 445 million dollars in 2003 and could reach 3.5-5.8 billion dollars. “The industry intends to form industry clusters which will focus on niche markets, in which the Philippines is well suited to compete in the global market. These may include mobile/wireless applications, animation and gaming software or even geographical markets like Japan,” said Villar.

Last year’s Philippine participation to SODEC generated 8 million dollars in sales. For information about the Philippine participation to SODEC, please contact please call CITEM’s IT Services and Electronics Division at telephone nos. 832 5044; 831 2201-09 local 212, 251, or 278 or e-mail itservices@citem.com.ph

Philippine IC design companies clinch US$2 million worth of deals with Taiwan

The Philippines 1st participation to Semitech Taipei, a platform that promotes focused interaction among different Taiwan semiconductor sectors, led to about US$2 million deal, according to the Center for International Trade Expositions and Missions (CITEM).

“Though the Philippines has very young IC design industry, we were able to capture buyers for our back-end IC design and product design service” said Trade Assistant Secretary and CITEM Executive Director Fe Agoncillo-Reyes.

Blue Chip Designs, Inc., Circuit Solutions, EAZIX, eDesign Technologies, Inc., Fastech Synergy, Inc., and Symphony Consulting, were the Philippine representatives for the event.

“Philippines impressed the Taiwan semiconductor market with the exhibitors’ product quality and functionality, as well as the adaptability to multi-assessment and functional application requirements,” added Agoncillo-Reyes.

EAZIX’ ZigBee was one of the products that captured the attention of Taiwanese buyers. Zigbee is an emerging wireless platform using a robust technology compatible with existing technologies using the same band. The technology targets manufacturers for remote switching, wireless sensor networks, remote sensing/telemetry, wireless remote control, personal area networks, home and building automation, and industrial controls.

Philippine companies also met with the 150 members of the Taiwan Semiconductor Industry Association (TSIA). “We look forward to the business mission of fabless Taiwan companies to the Philippines so they will learn more about our capabilities in IC design services,” said Agoncillo-Reyes.

According to the Semiconductor Industry Association, worldwide sales of semiconductors are expected to reach US$205 billion in 2006, with compound annual growth rate of 9.8 percent through 2008, amounting to US$309 billion.

Taiwan remains the global leader in foundry and captures the second-largest IC design industry. Semico Research Corporation also reported that Taiwan outperforms the worldwide standard with a 6.7% annual growth rate with values reaching US$35 billion in 2005.

Philippines eyes niche in Middle East construction market

Filipino manufacturers and contractors are urged to explore niche in the $1 trillion Gulf construction market, according to the Department of Trade and Industry through its export promotion arm, Center for International Trade Expositions and Missions (CITEM).

The Philippines will participate for the first time in The Big 5 in Dubai, the most comprehensive annual event for contractors, specifiers, architects, engineers and buyers from the Gulf countries. It featured 2,000 companies from 50 countries, and attracted over 34,000 key buyers and decision-makers last year.

“Now that the construction materials sector is ready to be promoted independently, The Big 5 is an opportunity for our local companies to explore niche in the Middle East market,” said Trade and Industry Assistant Secretary and CITEM Executive Director, Fe Agoncillo-Reyes.

After The Big 5 in Dubai, the delegation will proceed to Bahrain for pre-arranged meetings with general contractors, property developers and distributors for exploratory talks and arrangements for possible project/contract. “A business matching meet is our value-added assistance to our exporters, which is proven to be a very effective vehicle to emphasize our competitive advantage,” added Reyes.

According to the new figures from MEED projects, a leading business opportunity tracker in the Middle East, the UAE remains the Gulf’s largest construction market. There were almost $300 billion worth of active projects in the federation, most in Abu Dhabi and Dubai. Projects in Saudi Arabia has doubled to more than $200 billion in the last 12 months, while Kuwait’s project market, has grown to $211 billion. The Gulf construction boom is seen to last for at least five more years. The Big 5 in Dubai is expected to bring opportunities to Philippine manufacturers and suppliers of building and construction systems, components, materials, fittings, and services.

The UAE is also seen to spend over US$7 billion to develop its water resources, through building desalination plants throughout the Emirates, making it an opportunity for water technology materials, treatment, systems, and technology manufacturers.

There are also business prospects for air conditioning services and systems, cleaning and maintenance, environmental, and refrigeration systems, as well as opportunity for custom built glass and metal fixtures and fittings. Interested companies may contact the Industrial Goods and Services Division of CITEM at 8311268, 8312201 locals 257 and 227, or email industrial@citem.com.ph.

Modern Indigenous

Tinalak cloth is one of the Tiboli tribe’s traditional properties exchanged during marriages and used as covering during births. Now, this distinct cloth is being shared outside the tribe and becoming the indigenous communities’ rich means and sustenance for livelihood.

Many businesses nowadays tap the exclusive services of Tiboli women of Lake Sebu, South Cotobato for tinalak-weaving, for no machinery can equal the dexterity, artistry, and patience of the Tibolis.

To further promote our SMEs from the countryside, as well as uplift the lives of indigenous communities, the Center for International Trade Expositions and Missions (CITEM) proudly included enterprises that support products and services of minorities in several trade exhibits, such as the National Trade Fair, which included the women’s cooperative T’boli Trade and Crafts, and the Tagum Agricultural Development Co., Inc. (TADECO) for the Manila F.A.M.E.

Living Room Culture

In the April edition of the Manila F.A.M.E., tinalak caught the attention of both local and foreign buyers. This intricate cloth that usually takes months to accomplish were beautifully rendered as sofa, center table, footstool, throw pillows, votive and vase covers by the Tagum Agricultural Development Co., Inc. TADECO products were first noticed at the National Trade Fair, and now one of the well-sought exporters of tinalak-based home furniture and accents.

Simple lines, clean details, and the character of materials used in TADECO’s living room collection further inspire the emerging trend of modern indigenous (MODI) living. A boxy sofa turned so comforting with the right softness of its off-white cushion, paired with cuddly throw pillows accentuated with wood beads in ethnic patterns designed by Cesar Gaupo. You can also choose from deep reddish-brown, black, and silvery-gray throw pillows accentuated with coco and glass beads in modern yet simple patterns. Buyers were also awed with footstools shaped like bongo drums—all these are made of tinalak.

Abaca-based home accents also charmed Manila F.A.M.E. visitors. Tinalak that were carefully stripped then twisted, bound and laced with copper wire were used as special vase holder or design for photo albums. Sinamay, that can be dyed with various colors were pleated and beaded as cover for tea light candleholders. Candlesticks measuring 3 to 4 ft. made of deep-brown abaca raw fiber with copper wire also made a statement during the fair.

Beyond Living

For many, it is such a great pride to fashion tinalak as part of clothing or home. But this growing interest for this culture-rich cloth is an enormous help to the lives of the minorities - one, by giving them livelihood, second, by aiding them in promoting their cultural identity, and lastly, by making their beautiful culture live forever.

Philippine participation in Singapore expo to boost wireless industry

The Philippines will bring its major players in wireless services to CommunicAsia in Singapore, an exhibition for the information and communications technology market, in a bid to boost the local wireless industry, according to the Center for International Trade Expositions and Missions (CITEM), the trade promotions body of the Department of Trade and Industry.

“The Philippine presence in CommunicAsia aims to promote the Philippine brand of ICT services to Asia and the world, as well as provide a venue for our local ICT companies to expand markets,” said Trade and Industry Secretary Peter B. Favila.

This year is the third time the Philippines is joining the annual expo in Singapore. Scheduled on 20-23 June 2006, CommunicAsia is attended by over 35, 000 trade visitors from Europe, United States, Canada, Australia, China, and the Asia Pacific.

As a strategic decision, local companies join CommunicAsia to highlight our excellent communications infrastructure, highly skilled workforce, innovative and creative content, and proactive government support, according to Trade Assistant Secretary Fe Agoncillo-Reyes.

For 2006, seven ICT companies from the Philippines will join CommunicAsia: Chikka Asia, D3Systems, Inc., Globe Telecom, Innove Communications, Load.com.ph, Mannasoft Technologies, PLDT and Smart.

To date, the Philippines is a recognized leader in mobile technology applications. Several firms recognized internationally for their world-class wireless capabilities were: Wolfpac Communications Inc. (WAMMP product); Smart Money (“Most Innovative GSM Wireless Service Customers,” 3GSM World Congress 2002); Globe G-Cash (“Best Mobile Messaging Service,” GSM Association Awards); Mannasoft (e-Services Philippines Best in Mobile/Wireless); Load.com.ph (Best Website); and PLDT (Best Emerging Market Carrier, Telecom Asia). Meanwhile, Chikka is the first mobile application developer in the Philippines to receive CMMI Level 5 ranking under the Carnegie Mellon’s Software Engineering Institute.

Aside from expanding their markets, the CommunicAsia participation is also an opportunity for local firms to scale up their operations, meet potential business partners, and enhance the country’s position as a hub for global infocomm business. CommunicAsia is being held in conjunction with Enterprise IT 2006, a platform for business and IT solutions and Broadcast Asia.

For information about the Philippine participation to CommunicAsia, please contact itservices@citem.com.ph or call 831-2201 loc 212, 251 and 301. Visit the website at www.e-servicesphils.com/communicasia2006